SECTION 1. Section 6 of Chapter 62 of the General Laws is hereby amended by inserting after subsection (t) the following subsection:-
(u)(1) As used in this subsection, the following words shall have the following meanings:
“Qualified residential rental property,” any unsubsidized two to four unit residential rental property.
“Qualified rental unit,” a tenant-occupied unit in a qualified residential property with a rent including utilities that does not exceed the High HOME Rent for the jurisdiction as defined by the United States Department of Housing and Urban Development (“HUD”). Units rented to immediate family members or dependents of the owner are not eligible for the credit.
(2) Any Massachusetts resident who is an owner of a qualified residential rental property located in the commonwealth who is not a dependent of another taxpayer shall be allowed a credit of up to $1,500 for each qualified rental unit, but for no more than six units. The credit shall be prorated by the number of months the qualified unit is rented to a qualified household. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest.
Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds his total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to his tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year.
SECTION 2. This act shall take effect for tax years beginning on or after January 1, 2020.
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